Edison Issues Outlook on Transgene (TNG)

LONDON, UK / ACCESSWIRE / September 23, 2019 / The recent failure of the Phase III PHOCUS trial is disappointing but we do not feel is critical to Transgene’s (TNG) future. The company’s potential pipeline combined with ICIs remains the key driver of long-term value. Focus now turns to the rest of the pipeline, particularly the expected readout by year end of the Phase II trial of TG4010 + nivolumab in first-line non-small cell lung cancer (NSCLC). Early-stage development continues with the announcement of the Invir.IO collaboration with AstraZeneca (AZN) and the advancement of the first product candidate (TG4050) from the company’s myvac platform into the clinic (initiating clinical trials in H219). We value Transgene at €287m (€3.45/share) vs €312m (€5.02/share) previously.

We value Transgene at €287m (€3.45/share) vs €312m (€5.02/share) previously, based on a risk-adjusted NPV model of TG4010, TG4001, TG1050 and TG6002. The decrease in value is driven by the removal of Pexa-Vec from our valuation. This has been offset by the gross €48.7m capital raise and $10m upfront from the AZN deal. We have updated our R&D cost assumptions across assets, rolled forward our model and updated for FX.

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